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Great Depression - Coggle Diagram

- - - - You fault if you're unemployed
      - Depression
      - ++ sucicide
      - ++ divorce, - births
      - Fake work
      - ++ hoboes --> 32, 2mil
    - - Shanties
      - Banks took them farms --> Reprosession
    - - Scavenge for foods
      - Overprodcuton = prices decreased --> not point to harvest food because no revenue
      - Food + expensive for unemployed to buy
  - - - African Americans and women --> hard hit
      - Men wanted jobs = took over jobs of minorites
    - - Small banks closed --> 5,000 course 21-29, 10,000 in 29-33
      - Banks survived = not much money and not much to loan = easy credit stopped
      - Small banks --> train gout money to quickly without notice
  - - - Waiting for paybacl
      - +++ tariffs
      - Currencies of other countries decreasing --> +++ expensive to buy imports
    - - overproduction
      - Wanted to reduce prodcution --> but nobody wanted to
    - - Old and new industries hit = no new employment
      - Domestic demand fell
- - - - Laissez faire: less regulation of economy
      - Trickle down: people are the top did well, everyone benefited
      - Fewer regulations
      - High Tariffs: more products are being produced in Ameirca
    - - Cars --> Henry Ford, mass production
      - Competition
      - ++ Road building --> could not keep up
      - +++ Consumer goods
    - - 1922-29 - unemployment never over 3.7%
        1920-29 - average working hours - 47 per week down to 44
        1914-29 - real wage increase of 14%
        1920-29 - GNP from $73bn - $104bn
      - Growth of bigger cooperations
      - Advertisement = ++ demand
    - - +++ money supply
      - Everyone could borrow = set up businesses or buy more staff = lower IR
    - - +++ investment in foreign countries
      - +++ export to other countries (eg USSR, main exporter)
      - USSR relied on US exports for 5 year plan
  - - - Inequality between white men & women, native and african americans
    - - Overproduction = - demand, + poor
      - 66% farms operating at loss
        
        Especially small farmers = could not rent or buy land nor machinery
      - Could not export the surpluses of agriculture = trade wars
    - - Speculative = doomed to failure
      - Trick you
      - Malpractice
      - +++ stocks --> spending too much (with or without money)
    - - "The Fed" --> board of 12 regulatory reserve banks, appointed by president BUT no gov intervention
      - +++ easy credit
      - Only represent banking rather then nation
      - ++ indecent banks = no access to reserves
      - Anyone could get loan
    - - European debt --> Germany did not pay back --> for repair
      - Misguied by investing in other countries
    - - Boom = + domestic consumption --> high tariffs and European debt
      - Late 1920s: Supply surplus: everyone had what they wanted/afforded
      - Business --> less workers = + unemployment --> downward spriral
  - - - However
        
        Mistakes made during 29's:
        
        Bankers
        
        Entrepreneurs
        
        Politicians
        
        Decision decision before and after WS = Great Depression
        
        Economy left to it's own to self correct
    - - Illusion, flawed
      - +++ bankers and entrepreneurs --> politicians did not realize this
- - - - Monday 28th: Dow down 13%, bankers did not want to help
      - Tuesday 29th: Sold, - 12% = CRASH
        
        Over 16 mil shares sold
        
        fell by almost 30% = lost 30 bn dollars
    - - Buying without specific reason
      - Buying to make money quickly --> 1 week later
      - Companies investing gin other companies
      - Investing in borrowed money/credit
      - Thursday, 24th October 29 --> WSC
        
        Everyone sold --> negative cycle/spiral = people sold, stock goes down, more people sell
        
        Panic --> sell sell sell
    - - CC back
  - - - Stocks destroyed lives and Companies --> downward spiral
    - - Too much credit --> anyone could take a loan
        
        Collapse of banks and credit, devaluation of stocks
    - - Low confidence --> even if you had money you wanted to save it
      - Undermined confidence with experts (eg: president, bankers)
- - - - Agricultural Marketing Act 29 / Federal Farm Board
        
        No intervention but help farmers by helping themselves
        
        31-32: surpluses made price fall
        
        Waste of taxpayer money --> payed over = farms to produce more
        
        Bill to pay for farmers to reduce production = failed due to too radical
    - - Hawley-Smoot Tariff 30
        
        European nations ended free trade
        
        -- American goods being exported
        
        Famers did not want this = Passed in Senater and Hoover no VETO
        
        Context
        
        After WSC --> American credit decreased = - international trade, Europe stopped paying reparation costs
        
        Germany became bankrupt = stoped paying back reparation fees and loans, whilst also specualtions about a war = hurt banks
    - - Moratorium 31
        
        21 June 1931: Extended dat collection of debt for 18 months = too late
        
        Later: made it illegal to sell securities from countries that ad not payed back debt
    - - Voluntarism, National Credit Corporation (October 31)
        
        Help banks
        
        bankers needed to fix their own investments = failure, faded away
    - - Relief:
        
        Emergency Relief and Construction Act (Summer 32)
        
        State had to declare bankruptcy
        
        Also need to pay off loan
        
        Pulled trigger on Hoover's popularity
      - Emergency Committee for Employment (ECE)
        
        500 million dollars --> too little
        
        No direct relief
        
        47 mil later
    - - Reconstruction Finance Corporation (RFC) (January 32)
        
        2 Bill
        
        Competition
        
        Banks
        
        Railworks
        
        Construction
        
        Money not distributed well
        
        41 mill --> 3 insitutions, biggest railroads, & public utilites
        
        Gov said that it would be beneficial --> but what about the individuals?
    - - Relief: Federal Home Loan Act (FHLA) 32
        
        Easy credit for mortages
        
        Loan was only 50% of the property --> ineffective
    - - GD was superior for politics
      - Solutions: counterproductive & unpopular = held responsible
      - Uncaring
      - Roosevelt = Fresh air
- - - - Banking
        
        Problem: banks closing 40 a day --> loss of confidence
        
        Emergency Banking Relief Act
        
        Closed banks
        Checked them out
        Reopened healthy banks
        RFC (Reconstruction Finance Corporation) took on debts
        
        Glass-Steagalll Act
        
        Regulations to stop bad speculation and malpractice
        Centralized buying and selling of gov securities
        
        Saved banking system tin 8 days and restored some confidence
    - - Farm Credit Act
        
        Agriculture credit into 1
      - Emergency Farm Mortgage Act
        
        Loaning funds to farms in danger to lose properity
      - Frazier-Lemke Farm Mortgage Act
        
        Money went back to farmers who had lost their savings --> Interest rate 1%
      - Agricultural Adjustment Act
        
        May 33
        
        Fallen by 6% 29-33
        
        Aim: use subsidy for farms to reduce area of land and production
      - Agricultural Adjustment Administration (AAA)
        
        Reduce production:
        Corn
        Cotton
        Milk
        Pigs
        Rice
        Tobacco
        Wheat
      - Tennessee Valley Authority (TVA)
        
        Construct 20 dams
        
        Ecological schemes
        
        Farmers = more productivity
        
        Hydro power
        
        ++ Jobs
        
        Welfare and education provided
        
        Residents income = + 200%, 29-49
      - ++ Income
        ++ signed up
        ++ popular
        -- overproduction
    - - National Recovery
        
        National Industry Recovery Act
        
        National Recovery Administration (NRA)
        
        Workers could have trade unions
        
        557 codes distributed to cover industries
        
        Encourage firms to regulate unfair competition
        
        Took away antitrust legislation for 2 years --> benefited business men
        
        ++ praise
        
        However
        
        Codes were adopted veryquicly with thought --> did not work as aspected
        
        Large firms got it but not the small ones
        
        = Firms could increase price and have low wages
        
        SC ruled uncon by 35
        
        Public Works Administration (PWA)
        
        Aim: put people back to work
        
        Method: finance projects with gov revenue = + growth
        
        Effect: put thousands of people back to work
    - - Federal Emergency Relief Act anf Federal emergency Relief Administration (FERA)
        
        Method: Pay out relief to people
        
        500 million --> half for state and gov
        
        Efficacy
        
        Efficacy: Not effective!
        
        State refused it
        
        Idea: it was your own problem
        
        Conditions to sign up were poor
        
        many days to approve
        
        Not a lot paid to families --> 25 d
      - Civilian Conservation Corps (CCC)
        
        Method: recruited men from 17-28 by DOL to work for national forests, parks and public lands
        
        30 d per month
        
        Efficacy: extended to 7y by Congress
        
        Gave new experiences to men as well as comradeship
        
        Most whites and did not have a job when it was over
        
        Improve literacy skills
      - Civil Works Administration (CWA)
        
        Emergency relief to unemployed
        
        Put people back to work
        
        Shut down during spring
    - - Gold Reserve Act
        
        Aim: increase amount of money by devaluing gold
        
        Method: take away the gold and revalue it and raise money supply
        
        Worked sort of
        
        Price did rise but had no effect on revery due to GD being too complex
      - Reconstruction Finance Corporation (RFC) --> not new
        
        ensured that all banks that opened were stable and that would not collapse --> benefited the rich and powerful as they were the ones seen as stable
    - - Did not bring the economic recovery that America needed
      - Radical rising -> FDR needed response (more government intervention was wanted from a radical pov)
  - - - Emergency Relief Appropriation Act, April 1935
      - Works Progress Administration
      - National Youth Administration (NYA)
      - Social Security Act, August 1935
    - - Rural Electrification Administration, May 1935 (REA)
      - Resettlement Administration, May 1935 (RA)
    - - Banking Act, August 1935:
    - - Public Utility Holding Company Act
      - Revenue (Wealth Tax) Act, June 1935
    - - American Federation of Labour (AFL)
      - Committee of Industrial Organizations (CIO)
- - - - D + seats in House and Congress
      - After ND2
        
        ++ number of seats for House and Senate for D
    - - Right
        
        Thanks FDR for saving capitalism
        
        However
        
        Went against FDR because:
        ++ Taxes
        ++ gov intervention
        
        Republ found it difficult to find a strong candidate
        
        The right believed that ND was too radical
      - Left
        
        Liberty Leaguers
        
        Traitor of his class
        
        ND similar to communism
        
        125,000 members went against FDR in 36 election
        
        Join together to form their own party
        
        Large fear because Alfred could win
        
        Old age pension --> wanted it back
        
        Huey Long and Charles Coughlin
        
        influence --> expresse dismay
        
        Not enough gov intervention
        
        Missed opportunity to state control of companies
        
        Redistributing wealth
    - - Left
        
        More of a impact --> became more progressive
        
        Seen to have a more potential threat
        
        This fear lead to Roosevelt change 2nd ND to become more radical?
      - Right
        
        Limited impact = not a lot of people were very radical
      - General:
        
        No influence in election or elsewhere
        
        ++ seats in Congress and House